ATLANTA, GA, Apr 01, 2008 (MARKET WIRE via COMTEX News Network) -- Mathis Partners, LLC ("Mathis"), a Georgia limited liability
company, today announced that it had filed a voluntary petition for
reorganization in the Georgia courts. The action was in response to a
foreclosure proceeding scheduled for April 1, 2008, which was
initiated by Mathis' lender, Haven Trust Bank ("Haven Trust"), on the
single project owned by Mathis. The foreclosure proceedings were
initiated when Mathis and Haven were unable to reach an agreement with
respect to certain modifications sought by Mathis on an approximately
$5.0 million loan relating to the Gates of Luberon residential
development project in Forstyth County, Georgia (the "Project").
Mathis is a single purpose limited liability company, which is a
wholly owned subsidiary of Comstock Homebuilding Companies, Inc.
(NASDAQ: CHCI) ("Comstock" or the "Company"). Mathis was formed by
Parker Chandler Homes, Inc. ("PCH") to develop the Project with Haven
Trust as its lender. The formation of Mathis and the initiation of
financing with Haven Trust pre-date the acquisition of PCH by
Comstock from PCH founders James Parker and Andrew Chandler.
"For several months we have been trying to reach agreement with Haven
Trust regarding loan modifications that would allow for successful
completion of the project," said Bruce Labovitz, Chief Financial
Officer of Comstock. "This is a chapter 11 bankruptcy filing of the
Mathis Partners entity only and does not affect the ability of
Comstock to conduct the remainder of its business in any way. This
situation is not indicative of the relationships we have with our
other lenders. Other than Haven Trust, we have a group of lenders
made up principally of large, well capitalized, regional and national
banks that have a good understanding of current market conditions and
have demonstrated a commitment to Comstock. We remain committed to
the Gates of Luberon project and hope to be afforded the time
necessary to complete the development."
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publicly traded, diversified real estate development firm with a focus
on affordable priced for-sale residential products. Comstock builds
and markets single-family homes, townhouses, mid-rise condominiums,
high-rise condominiums, mixed-use urban communities and active adult
communities. The company currently markets its products under the
Comstock Homes brand in the Washington, DC; Raleigh, North Carolina;
and Atlanta, Georgia metropolitan areas. Comstock Homebuilding
Companies, Inc. trades on NASDAQ under the symbol CHCI. For more
information on the Company or its projects please visit
www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made
pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Statements that are predictive in
nature, that depend upon or refer to future events or conditions, or
that include words such as "may," "will," "expects," "projects,"
"anticipates," "estimates," "believes," "intends," "plans," "should,"
"seeks," and similar expressions, including statements related to
Comstock's expected future financial results and anticipated growth
in the Washington, DC housing market, are forward- looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties that may cause future results to differ
materially from those projected or contemplated in the forward-looking
statements. These risks and uncertainties include, but are not limited
to, economic, market and competitive conditions affecting Comstock
and its operations and products, risks and uncertainties relating to
the market for real estate generally and in the areas where Comstock
has projects, the availability and price of land suitable for
development, materials prices, labor costs, interest rates,
Comstock's ability to service its significant debt obligations,
fluctuations in operating results, anticipated growth strategies,
continuing relationships with affiliates, environmental factors,
government regulations, the impact of adverse weather conditions or
natural disasters and acts of war or terrorism. Additional
information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the
Company's most recent form 10-K, as filed with the Securities and
Exchange Commission on March 24, 2008. Comstock specifically
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.